Natural Gas NOW
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The big energy news this week has been all LNG. Rural Americans are benefiting by a shale revolution positioning us to be the supplier in a LNG world.
The headlines from around the world this week in energy news this week have largely been about LNG and the increasing demand for it. This demand is putting rural Americans in the enviable position of potentially becoming the world’s supplier of the stuff. We’re talking about gas produced in rural Pennsylvania, Ohio, Texas and West Virginia that is going to China, Italy, Japan, Pakistan and South Korea. It’s an enormous opportunity.
One of the ships used to take LNG from Cove Point around the world. Photo by Manuel Hernández Lafuente via VesselFinder.com.
All one needs to do understand this tremendous opportunity is to peruse some of the journals out there that follow LNG activity. Here, for example, are some excerpts from the ChinaKnowledge website (emphasis added):
China is on track to become the world’s largest importer of natural gas this year, overtaking long-standing leaders Japan and South Korea…
China has imported 57.18 million tons of gas from the start of the year to August, overtaking Japan’s 56.45 million tons…
Natural gas, which is the cleanest source of fossil fuels is set to play a larger role in China’s energy requirements as the country looks to cut down on air pollution. In addition, natural gas is also essential for the development of new energy sources such as solar or wind energy by serving as a backup during certain times when production stalls especially during cloudy weather or lack of wind.
Currently, natural gas only accounts for 7% of China’s total energy supply. In comparison, the average usage for most developed economies stand at around 30%, showing the vast potential in China’s natural gas market. China hopes to increase natural gas usage to 10% within the next few years with a longer-term target of more than 15% eventually.
Not only is China importing ever more gas, it expects the trend to continue because it understands gas is necessary to the development of renewables. Now, if only the governor of New York State understood that simple fact.
Pakistan is also importing a lot of LNG, according to the Hellenic Shipping News:
Pakistan’s LNG imports were up by 62% year on year in Q3 2018, with the country receiving 29 cargoes compared with 18 in Q3 2017. But despite the annual increase, imports in Q3 2018 were virtually flat compared with the previous quarter, at 1.84 mt.
Pakistan’s intake of LNG has grown rapidly since 2015, when the country received its first cargo. Pakistan is on track to import around 7 mt of LNG in 2018.
And, here’s what’s happening in Italy, according to moderndimplomacy:
The demand for natural gas, however, is on the rise all over the world…
The North American analysts think that, for the whole EU, the other natural gas sources are at their peak of exploitation.
…the United States is currently pressing for a diversification from the Russian pipelines, offering its liquefied natural gas (LNG) for ships to Northern Europe’s terminals and, recently, also to the Italian ones…
Italy, one of the largest LNG consumers in Europe, produces a good share of natural gas internally, but it still imports 90% of the gas it consumes, while 60% of Italy’s LNG consumption is divided almost equally between two suppliers, Algeria and the Russian Federation…
Also Germany, like Italy, imports much gas from Russia – about 50% of its yearly consumption…
The Greenstream pipeline connects Libya to Italy, with a maximum capacity of 46.7 million cubic meters per day, with regasifiers located in Panigaglia and off Leghorn’s coast (OLT), as well as off Rovigo’s coast…
As is well known, the TAP is under construction.
With a maximum capacity of 24.6 million cubic meters per day, it stretches from Greece to Italy through Albania.
There is also the IGI Poseidon, again between Greece and Italy, as well as the regasification terminal of Porto Empedocle, and the other terminals of Gioia Tauro and Falconara Marittima…
Hence if all these networks are already operational or will be so in the near future, Italy alone could shift the axis of the natural gas transport from the North (namely Great Britain and Holland) to the South (namely Italy and Greece)…
This is a further phase of reduction of the EU dependence on Russian gas.
But also the purchase of LNG from the United States could undermine the Italian plan of becoming the European natural gas hub, as against the Dutch-British system.
Obviously the liquefied natural gas is sold by the United States mainly as an operation against Russia.
Currently, the American LNG has prices that are approximately 50% lower than the Russian gas prices…
Nevertheless, while China’s gas consumption is booming, the ships carrying natural gas from the United States tend to go right to Asia, where, inter alia, a much higher price than the European average can be charged…
Nevertheless, if the cost of the trans-Atlantic transport and the cost of regasification in our terminals are added… we can see that the US gas and the Russian LNG prices tend to become the same…
, buying American gas would mean avoiding the US import tariffs for European cars in the future, which would lead many EU governments to willingly accept President Trump’s offer…
For the time being, however, the United States sells much of its LNG to Asia and Latin America, where currently prices are still higher than in Europe.
There are several other similar stories out there this week, but they all trend the same direction; LNG is booming and America is in the thick of it. We have an opportunity to achieve the energy dominance and LNG is a big part of the picture. That gas will come farms in rural Pennsylvania, Ohio, Texas and West Virginia among others. It will help continue the ongoing revitalization already] taking place in these regions and raise them up, despite the best efforts of the Delaware Povertykeeper, et al and the gentry class financiers of those efforts. We are winning big-time.
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The post It’s An LNG World Today and Rural Americans Stand to Benefit appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/its-an-lng-world-today-and-rural-americans-stand-to-benefit/
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